Mr. Joey Grant
Max Atlas Equipment International Inc.
371 Grand-Bernier Nord
St-Jean-sur-Richelieu, QC J3B 4S2
Date of issuance of ruling: December 1, 2015
This is in response a request you submitted on June 23, 2015 for an advance ruling on the tariff classification of the Chaoyang model CR960A (vulcanized) rubber tire mounted on model JG28SW61X steel wheel. This product is manufactured by/exported from Hangzhou Zhongce Rubber Co., Ltd, and Zhejiang Jingu Co. Ltd., Zhejiang, China.
|Effective Date:||December 1, 2015|
Chaoyang model CR960A (vulcanized) rubber tire mounted on a Jingu model JG28SW61X steel wheel.
Analysis and Justification
The tire mounted on a wheel is identified as being for use with both trucks and trailers. It is marketed as a regional steer/trailer tire. Regional steer tires are used on trucks, buses, etc.
Section XVII, Note 3 states:
3. References in Chapters 86 to 88 to "parts" or "accessories" do not apply to parts or accessories which are not suitable for use solely or principally with the articles of those Chapters. A part or accessory which answers to a description in two or more of the headings of those Chapters is to be classified under that heading which corresponds to the principal use of that part or accessory.
In this instance, the above Note applies equally to both headings 87.08 and 87.16 (parts of trucks and parts of trailers). The tire mounted on the wheel is suitably and principally for use with either vehicle. The Explanatory Notes to headings 87.08 and 87.16 read as follows:
87.08 Parts of vehicles of headings 87.01 to 87.05.
(i) They must be identifiable as being suitable for use solely or principally with the above-mentioned vehicles;
87.16 "PARTS" of trailers, semi-trailers, etc.
(i) They must be identifiable as being suitable for use solely or principally with such vehicles;
Item (K) to the Explanatory Note to heading 87.08 includes "… wheels (pressed steel, wire-spoked, etc.), whether or not fitted with tyres (in Canada, spelled "tires"); …".
Item (4) to the Explanatory Note to heading 87.16, under "PARTS" provides for the inclusion of steel wheels and parts thereof, including wheels fitted with their tires (for trailers and semi-trailers in the same heading).
As the good in question is suitable for use with both trucks and trailers, it is not possible to determine the principal use of the tire mounted on the wheel, we must make reference to General Interpretative Rule (GIR) 3(c), which reads:
When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
In the current case, the headings under consideration are headings 87.08 and 87.16. In applying GIR 3(c), the mounted tire on the wheel for use with trucks and trailers is classified in heading 87.16.
Section 10 of the Customs Tariff directs that classification of imported goods shall be determined in accordance with the General Rules for the Interpretation of the Harmonized System. Section 11 of the Customs Tariff states that in interpreting the headings and subheadings, regard shall be had to the World Customs Organization's (WCO) Explanatory Notes to the Harmonized Commodity Description and Coding System.
General Interpretative Rule 1 (GIR 1) directs that titles of Sections, Chapters and sub- Chapters are provided for ease of reference only. For legal purposes, classification shall be determined according to the terms of the heading and any relative Section and Chapter Notes.
Similarly, General Interpretative Rule 6 (GIR 6) directs that classification shall be determined according to the terms of those subheadings and any related Subheading Notes.
The mounted tire on the wheel is classified under 8716.90.30.00, as other parts for the manufacture of trailers when imported for that purpose or under 87184.108.40.206, as other parts of trailers (other than for the manufacture of trailers), when not imported for the manufacture of trailers.
This decision is in accordance with General Interpretive Rules 1, 3(c) and 6 and Canadian Rule 1.
The importer is required to maintain accurate records of import goods consumed or used in the manufacture of articles as declared under an end-use provision of the Customs Tariff.
This ruling has been issued under paragraph 43.1(1)(c) of the Customs Act and will be honoured by the Canada Border Services Agency (CBSA) for future importations of the goods specified, provided the material facts and circumstances remain as originally presented; all conditions in the ruling have been met; the ruling has not been modified, revoked, revised, or cancelled; and the Customs Tariff legislation has not changed. Should there be a change in the material facts or circumstances pertaining to the goods, you must notify the CBSA as soon as possible. You may request that the advance ruling be modified or revoked as of the date of the change.
Importers should quote the advance ruling number at the time of importation in either the description field of the B3 entry document or on the Canada Customs Invoice. Exporters or producers should quote the advance ruling number on the Certificate of Origin or commercial invoice accompanying the goods.
Should you disagree with this advance ruling, you may file a dispute notice under subsection 60(2) of the Customs Act within 90 days of the date of issuance. Please see the procedures outlined in Appendix C of the CBSA's Memorandum D11-11-3, Advance Rulings for Tariff Classification.
Please be advised that the goods covered by this advance ruling are provided for in a specific tariff provision that is considered 'reason to believe' for the purposes of section 32.2 of the Customs Act and the CBSA's Administrative Monetary Penalty System, described in Memorandum D22-1-1. In the event that you have been classifying these goods elsewhere in the tariff, you are obligated to self-correct. See Memorandum D11-6-6 for information on self-correction/self-adjustment.
All Memoranda referenced in this letter may be accessed on the CBSA website.
Consent to the Public Release of the Advance Ruling
As per your consent statement, we will release this advance ruling to the public, in both official languages, in accordance with the procedures described in Memorandum D11-11-3. The ruling will be published on the CBSA website in 30 days.
Manager, Tariff Policy Unit 'B'
Trade Policy Division
- Date modified: